Companies: CPC   

Private investigation and stocktaking play Capcon, a July Growth Company Investor recommendation at 63.5p, has been quiet over recent months and the shares have slipped back from our recommendation price. But the company remains attractive. Founded by chairman and 15.4% shareholder Ken Dulieu, Capcon has wrapped up two acquisitions since floating in May 2001 taking it into new investigatory areas like insurance and banking. Interim figures to the end of March showed turnover rocketing up 61% to £3.34m. Much of this was attributable to positive contributions from acquisitions VSA - bought in April 2002 - and corporate investigation business Argen, acquired in February of this year. Pre-tax profits fell from £154,000 to £33,700 though, after goodwill and a higher interest charge reflecting higher borrowings taken on to complete the acquisitions. Sales in the core audit and stocktaking division rose and income from its traditional investigatory services division was maintained at last year's level, though margins increased. Broker Charles Stanley originally brought Capcon to Aim with a £1.4m placing at 80p a share, but the current broker and adviser is Williams de Broe. Analyst Tania Wild is going for profits of £380,000 pre-tax and goodwill for the full year to September, giving earnings per share of 3.82p. This should rise to £700,000 before tax and goodwill providing earnings per share of 6.13p by 2004. Worth holding.